European Union tariffs on U.S. goods come into force

European Union to hit US with tariffs on $3.2 billion worth of imports

Lloyd Bates
|
22 June, 2018, 20:54

Trump has repeatedly singled out German automotive imports to the USA for criticism.

"We have a trade war - and it's an escalating trade war", SEB chief economist Robert Bergqvist told AFP in an interview.

Trump has always been fixated on imported cars.

In the US, Trump has launched an investigation into whether vehicle and automotive parts imports are hindering the sector's ability to compete globally. The White House has invoked the same rationale in assessing tariffs earlier this month on steel and aluminum imports. The import duty on chickpeas and bengal gram, or chana, has been increased to 70 per cent and will take effect from 4th August. Tariffs for those materials now stand at 25% in a move to protect local producers.

Brussels first drew up the list in March when US President Donald Trump initially floated the idea of 25 percent tariffs on steel imports and 10 percent on aluminium.

Trump's tweet on autos came after EU reprisals against his tariffs on European steel and aluminum. BMW is one of South Carolina's largest employers, with more than 9,000 workers in the state. Most imports come from Asia, but several European brands, including Land Rover, don't have United States factories.

Trade representatives from India and the United States are set to meet in New Delhi next week.

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Economists noted that the amount of money involved with India's levies dwarfed in comparison with that of China - U.S. -India trade was $126 billion a year ago, while U.S. Of those cars, just over half were exported by German auto makers. But, he said, the move could hurt India's economic growth as the country diversifies its exports, as well as prompt India "to re-look at US relations as undependable".

"If you have trade barriers and restrictions, we can not create as many jobs as we are planning to", Volvo Cars CEO Hakan Samuelsson told Reuters at an event celebrating the new facility.

A transatlantic trade battle could open a second front in a global trade war, with much at stake: The United States and the European Union trade just over €1 trillion ($1.2 trillion) in goods and services each year.

A Mercedes spokesman has been approached for comment.

In an interview with Business Insider Germany last week, Bernhard Mattes, the president of German Association of the Automotive Industry (VDA), said that tariffs would not only hurt European automakers but the United States economy as well.

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